The sun. [volume] (Morris, Stevens County, Minn.) 1882-1895, 1887-06-23
LONG AND SHORT HAULS.
The Interstate Commission Finally Renders a
Decision on the Fourth Section OF the
Law.

Law.
The Railroad Companies Allowed to Be Guided
by Their Own Judgement in Constructing
the Act.
Washington, June 15.-The interstate
commerce commission rendered tonight
the long-expected decision upon the fourth
section of the Interstate act, which pro-
hihits "a greater charge for the transpor-
tation of passengers and property over
a shorter than longer distance
in the same direction under sub
s,ansially na ni.; s'mar mar circumstances n1s
upon the petition of the Louis vile Il Nash
vile and other railroad companies which
were among the first to apply for relief
from the operation of the fourth section.
The decision comprises more than 10, 600
words. The most important feature is
the announcement that the commission,
after mature consideration, is satisfied
that the statute does not require it,
in every instance OF an exceptional case,
10 grant its order for relief. The decision
says:
Before the carrier is at liberty in its de-
parture from the general rule, the carrier
must Judge for itself what are "substanti-
ally similar circumstances and condl-
tions,N which preclude special rate re-
bate or drawback which is made unlawful
by the law, since no tribunal is empowered
to Judge for it until after the carrier has
acted; then only for the purpose of deter
mining whether its actions constitutes u
violation OF law. The carrier judges on
peril of the consequences; bnt the special
rates, rebate or draw back which it grants
are not illegal when it turns out that the
circumstances aud conditions were not
such as forbid it; and as congress clearly
intended this, it must also, when using the
same words in the fourth section, have in
tended that the carrier whose privilege was
in some way limited by them, should act
upon its Judgment OF limiting clrcum-
stances and conditions. The commission
therefore, will not undertake to decide i'll
advance what constitutes or what does
not constitute discrimination under sub
stantially similar circumstances and con-
ditions," but will leave the railroad COM
panies in fixing their tariffs to act upon
their own Judgment and at their risk, sub
jeet to accountability before the commits
sion and the courts in eases where COM
plaint is made by interested parties OF
violation OF the law.
TO GUIDE THE RAILROADS.
For the guidance, however, OF railroad
companies the commission has considered
at great length nearly all questions raised
under the fourth section OF the law, and
has reached conclusions which are sum-
married. as follows:
First-The prohibition in the fourth sec
tion against a greater charge for shorter
than for Il longer distance over the same
line in the same direction, the shorter be-
ing included within the longer distance, as
qualified therein, is limited to cases in
which circumstances and conditions are
substantially similar.
Second-The phrase under substantially
similar circumstances and conditions" in
L.
sense as in the second section; and under
the qualified form of prohibition in the
fourth section, carriers are required to
Judge in the first instance with regard to
similarity or dissimilarty of circumstances
and conditions that forbid permit u
greater charge for Il shorter distance.
Third-The Judgment OF carriers in re-
spect to circumstances and conditions is
not final. but subject to the authority OF
the commission and courts TO decide
whether an error has been committed or
whether the statute has been violated:
and in case OF complaint for violation OF
the fourth section OF the act, the burden OF
proof is on the carrier to Justify any de-
parture from the general rule prescribed
by the statute, by showing circumstances
and conditions, substantially dissimilar.
Fourth-The provisions OF section l. re-
quiring charges to be reasonable and Just,
and Of section ?, forbidding unjust dis
elimination, apply when exceptional
charges are made under section +, as they
do in other cases.
Fifth-The existence OF actual competi-
ton which is OF controlling force in respect
to traffic may make out dissimilar circum-
stances and conditions emitting
the carrier to charge less
for longer than for shorter haul over
the same line in the same direction, the
shorter being included in the longer in the
so1J 90 sac. IN Wbop compatition 10
with carriers by water which are not sub.
ject to the provisions OF the statute. (2)
When the competition is with foreign or
other railroads which are not subject to
the provisions of the statute. (3) In rare
and peculiar cases OF competition between
railroads which are subject to the statute
when the strict application OF the general
rule OF the statute would be destructive OF
compitition.
Sixth-When a greater charge in the ag-
ceegate is made for the transportation OF
passengers or like kind OF property for a
shorter than for longar distance over
the same line in the same direction the
shorter not being included in the longer dis
tance it is not sufficient justification there
fore that traffic which is subjected to such
greater charge is way or local traffic, andthat
which is given more favorable rates is not,
nor is it sufficient Justification for such
greater charge that short haul traffic more
expensive to the carrier unless when the
circumstances are such as make it excep-
tionally expensive or long haul traffic ex-
ceptionally inexpensive, the difference be-
ing extraordinary and susceptible ofproof
nor that a lesser charge on longer haul,
merely q continuation OF favorable rates
under which trade centers, or individual es-
Establishments have been built up. The
Tact that long haul traffic will only bear
certain rates is no reason for carrying it
for 1aaa han at nj ut
traffic.
CONSIDERED IN DETAIL.
Considering the cases governed by the
9th section in the above abstract the COM
mission takes up the first, competition with
carriers by water, and says:
1t was fairly shown before US that in.
stances exist, and many will be found,
along the routes OF the petitioners lines in
Kentucky. Tennessee, Georgia, Alabama,
Mississippi and Louisiana, three compet-
ing waterways force down railroad rates
below what it is possible to make them at
non-competitive points and still maintain
the roads with success or efficiency. The
only question is whether competition is
kept within proper bounds Low rates are
n necessity OF the situation, and if rail-
roads compete with water transportation,
either on ocean or navgable rivers; they
have no choice but to accept such rates.
To compel the roads to observe strictly
the general rule laid down by the fourth
section would necessitate their abandon
ment OF some classes Of business in
which their competition with wa
ter transportation is now of pnblic
Importance. The railroads must either
be allowed to compete with vessel owners,
and make low charges for that purpose, or
they must leave vessel owners in the pos
session OF business without the check upon
charges which competition would afford"
v,IVST<a
gress had these circumstances in view in
passing the law. Competition with Cana
dian roads may, it is believed, present q case
Of dissimilar circumstances and condition.
Whenever such roads compete with roads
in the United States for business between
one part OF the country and another, a
state of circumstances arises as to such
business which iustifies American roads
meeting such competition by correspond
ing reduction OF rates, without regard to
the fact that in SO doing the rates between
terminals may be reduced below the rates